Strategy trumps rate-chasing as investor refinancing jumps
Investor refinancing has come back strongly, but the market has changed – and brokers need to change with it
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SOMETHING HAS changed in the way property investors approach refinancing. For much of the past decade, the decision to refinance was relatively straightforward: find a sharper rate, lodge the paperwork, move on. That era is over, and the brokers who recognise it earliest will be the ones best positioned to capitalise.
“Investor refinancing is no longer just about chasing the sharpest rate,” says Baber Zaka, general manager of third party banking at Commonwealth Bank. “It’s about structure, strategy and suitability.”
The two 2026 rate hikes are very likely to have accelerated the already-growing momentum in refinancing activity. Equifax has observed that in 2022, overall refinancing volumes leapt by 25% in the month after the RBA’s first hike in rates, with refinancing activity staying above baseline for the following six months.
The pressure on brokers to have sophisticated, proactive conversations with their investor clients has rarely been greater.
Blake Buchanan, general manager at Specialist Finance Group (SFG), has watched the shift play out in real time across his aggregator network. “Investor refinancing behaviour has become more strategic,” he says. “Earlier in the rate cycle many borrowers simply chased pricing, but today the focus is increasingly on portfolio sustainability.”
What brokers need to know about lender positioning
In a market where brokers have a wider choice of lenders than ever, the question of how to evaluate those lenders has become more nuanced. Pricing still matters, of course, but experienced brokers working regularly with investors are increasingly asking a different set of questions first.
Buchanan has a clear framework for this. “In order, brokers should be asking: Can you do it? What is the experience going to be like for all? And finally, what is the price?” he says. The reasoning is straightforward: investor transactions can be complex, and brokers need confidence that a lender will assess the deal pragmatically and support it through to settlement. “Clear policy settings, responsive credit teams and transparent communication are often just as important as headline pricing when brokers are selecting lenders for investor clients,” he adds.
The advice opportunity
For brokers willing to develop real expertise in investor lending, the opportunity ahead is substantial. But both Buchanan and Zaka are clear that capturing it requires a shift in how brokers position themselves, and in the depth of conversations they are willing to have.
“Investor lending is fairly simple for a small portfolio but becomes more complex with bigger portfolios,” says Buchanan, “particularly where borrowers have multiple properties and different lender exposures.” The implication is that brokers who can operate confidently at that level of complexity occupy a genuinely valuable position.
From the lender’s perspective, Zaka describes a model built around certainty and the ability to handle complexity. “At CommBank, our focus is on delivering sustainable, long-term value,” he says. “We combine disciplined, transparent credit policy* with scalable support for brokers managing multiple clients, particularly investors with growing or more complex portfolios. Our experienced relationship managers provide true case ownership, reducing friction and improving confidence around turnaround times.”
Zaka also points to structural capability as a genuine differentiator for brokers managing clients with mixed portfolios. “We support more complex structures through initiatives such as our dual application process when your customers have both residential and commercial lending needs,” he says. The emphasis on early engagement runs throughout his thinking. “The more scenario testing we can do up front with brokers, the greater the certainty we can provide, and the less friction customers face later in the process.”
Technology and data: from reactive to proactive
One of the more significant shifts in the broker market is the growing use of data and technology to identify investor clients who need a conversation before they come knocking. The old model – waiting for a rate to expire or a competitor offer to arrive – is giving way to something more systematic, and brokers who are not yet using the tools available to them are leaving opportunity on the table.
“Data gives us the ability to move beyond rate-driven refinancing triggers,” says Zaka. “We’re leveraging technology insights to support brokers to identify investor clients who may benefit from a review before pressure builds. That supports a more proactive approach, where brokers can engage in strategy-led, meaningful conversations rather than waiting for a rate expiry or competitive offer to drive action.”
At SFG, the aggregator’s proprietary platform SFGconnect is central to this capability. “Data and technology are helping brokers move from reactive refinancing to proactive portfolio management,” says Buchanan. “Aggregators and lenders now have greater visibility across loan maturity profiles, rate changes and borrower activity. These insights allow brokers to identify investors whose loans may no longer be competitive or whose portfolios could benefit from a strategic review.”
The practical outcome is a broker who can pick up the phone to a client well before a problem develops.
Zaka frames the technology agenda in similarly pragmatic terms, with an emphasis on what the tools can deliver for brokers on the ground. “Technology plays a critical role, but it has to be purposeful,” he says. “Our enhancements to CommBroker are designed to provide clearer pricing transparency, product visibility and settlement tracking, while improved escalation and communication pathways are helping deliver greater turnaround certainty.”
Specialist Finance Group (SFG) is a family-owned business that’s been serving the broking community for more than 30 years. With a customer-centric model, SFG provides its members with the best possible systems, services and support to assist them in growing and improving their businesses. SFG’s unique model has seen rapid expansion in recent years that has consistently delivered results well above system.
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At CommBank, we’re focused on giving our brokers more confidence in us and delivering an exceptional experience for them and their customers. We are doing this by being reliable, transparent, accessible and adaptable. Our strategy has been designed based on broker feedback and focuses on how we can improve the experience and build a strong and more sustainable third party banking channel. If you’re not already accredited with CommBank, now is a great time to join us as we’ve simplified our accreditation process. Head to www.commbank.com.au/home-loans/broker-accreditation.html and find out more. If you’re already accredited with CommBank, check out our 24/7 training hub – it’s all part of our commitment to giving you more confidence to build your business and deliver an exceptional homebuying experience to customers.
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Buchanan also points to product-level change as a marker of how much is possible in this space. “I’m seeing a lot of innovation in the lending space, with an example being a new lender on our panel that can lend with no requirement for monthly repayments,” he says. “No doubt more innovation will follow.”
Zaka sees the growth opportunity in similar terms, framing complexity as an asset rather than a burden for the broker willing to lean into it. “We see strong opportunity for brokers who lean into complexity, particularly those who develop expertise in multi-property investors and portfolio restructuring,” he says.
The broader call to action, from both perspectives, is a shift from transactional thinking to portfolio-level planning. “Our goal is to support brokers to move from reactive problem-solving to proactive portfolio planning,” says Zaka, “giving greater certainty in an environment where margins for error are smaller.”
“When brokers engage with us up front, we can help identify where the real constraints sit and work through structuring options before submission”
Baber Zaka, CommBank
In Partnership with
The serviceability wall
If there is one concept that dominates every conversation about investor refinancing right now, it’s serviceability. Higher assessment rates, more rigorous living expense verification and tighter income treatment mean borrowers who have never missed a repayment can still find themselves unable to refinance under a new lender’s model. It’s a reality that is catching investors off guard and keeping brokers busy.
“Serviceability remains the primary constraint in today’s refinance market,” says Zaka, “particularly for investors with multiple properties or non-standard income profiles. Even small changes in buffers or income treatment can materially affect capacity.”
Buchanan is equally direct about where the pressure is concentrated. “Serviceability is the biggest pressure point we’re seeing,” he says. “Higher assessment rates and increased living expense verification mean some borrowers who have always met repayments can struggle to refinance under a new lender’s servicing model. This is particularly evident among investors with larger portfolios.”
Beyond serviceability, the market is presenting other friction points that brokers need to be across. Valuation movements are creating stress in some equity positions, says Zaka, which affects how investors approach refinancing altogether.
For those with larger portfolios, the policy differences between lenders can become just as significant an obstacle as the raw numbers. “Policy differences between lenders can also create challenges,” says Buchanan, “particularly around rental income treatment, interest-only terms and the number of properties lenders are willing to support. For investors with multiple properties, lender exposure limits can become an unexpected barrier.”
These stresses are unlikely to ease in the short term. Zaka is candid about the outlook. “Capacity will remain the biggest hurdle in 2026, particularly for those with established portfolios,” he says. “Lenders should look at promoting earlier, holistic portfolio conversations rather than last-minute fixes. When brokers engage with us up front, we can help identify where the real constraints sit and work through structuring options before submission.”
For Buchanan, the message for brokers is equally pointed. “For brokers, the biggest opportunity lies in specialising in investor portfolio advice rather than focusing solely on transactions,” he says. “Investors increasingly value advisers who understand structuring, lender policy differences and long-term portfolio strategy.”
Indeed, investor lending overall is roaring ahead. ABS lending data shows that in the December 2025 quarter, investor lending hit $43 billion, up 31.8% year-on-year.
The investors are getting more sophisticated. The portfolios are getting more complex. The brokers best placed to help them are those prepared to have the hard conversations early, with the right tools, the right lender relationships and a genuine understanding of what their clients are trying to build.
“Higher assessment rates and increased living expense verification mean some borrowers who have always met repayments can struggle to refinance under a new lender’s servicing model. This is particularly evident among investors with larger portfolios”
Blake Buchanan, Specialist Finance Group
Buchanan describes a bifurcated market. On one side are investors rolling off fixed rates and seeking cash flow relief; on the other, more experienced borrowers are using the moment to restructure debt across lenders or rebalance gearing positions. “There’s also greater emphasis on maintaining serviceability buffers,” he adds, “as some investors are increasing portfolios after enjoying significant capital growth in recent years, whilst some struggle to service additional debt.”
The data shows that external refinancing was softening through much of 2024, with year-on-year figures in negative territory as recently as September that year. But from December 2024 it jumped sharply, a turning point that has since been sustained, lifting external refinancing nearly 40% from mid-2024 to December 2025. Total investor refinancing – external and internal combined – reached $36 billion for the December 2025 quarter, up 24% year-on-year and 60% from December 2023.
The picture that emerges is one of a market in transition, where the old playbook of simply shopping for the best rate no longer serves investors well, and where the role of the broker has become considerably more demanding and considerably more valuable.
Industry experts
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Blake Buchanan
Specialist Finance Group
Baber Zaka
CommBank
Baber Zaka is general manager of third party banking at Commonwealth Bank, where he leads broker partnerships with a focus on transparency, collaboration and delivering value. Over more than a decade at CommBank, Zaka has held senior leadership roles across distribution strategy and operations. He brings a strong background in financial analysis, strategic planning and deal management, honed through his experience at NBN Co, Virgin Money, RBC and KPMG. Zaka holds a Bachelor of Science in Economics and Philosophy from the London School of Economics. Known for his broker-first mindset, he champions innovation and trust within the lending ecosystem.
CommBank
Baber Zaka
Blake Buchanan, general manager at Specialist Finance Group (SFG), is an expert in the broker channel with some 20 years’ experience in the finance industry, specialising in broking, lending and aggregation. Buchanan is known for his expertise and passion for the broker channel, along with his ability to deliver strong distribution results through systems, people, processes and partnerships.
Specialist Finance Group
Blake Buchanan
Published 13 Apr 2026
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Investor refinancing trending up
*Applications are subject to credit approval, satisfactory security, and minimum deposit requirements. Conditions apply to all loan options. Full terms and conditions will be set out in our loan offer if an offer is made
Sharp rise in investor lending
Source: ABS Lending Indicators
Source: ABS Lending Indicators
50
30
20
10
0
Mar 2025
40
$32.4bn
Jun 2025
Sep 2025
Dec 2025
$32.9bn
$39.8bn
$43.0bn
$bn
YoY change
Click to see more
16.0%
6.9%
18.7%
31.8%
Change vs previous qtr
-0.3%
1.4%
17.6%
7.9%
35
40
20
10
5
0
Dec 2023
Mar 2024
Jun 2024
Sep 2024
$22.5bn
$23.4bn
$25.2bn
$26.7bn
YoY change
Change vs previous qtr
Click to see more
+2.3%
-3.7%
+3.7%
+9.9%
-7.4%
+4.0%
+7.7%
+6.0%
Dec 2024
Mar 2025
Jun 2025
Sep 2025
Dec 2025
15
25
30
$29.0bn
$29.1bn
$30.7bn
$34.2bn
$36.0bn
+28.9%
+24.4%
+21.8%
+28.1%
+24.1%
+8.6%
+0.3%
+5.5%
+11.4%
+5.3%